New Proposal Aims to Make Cryptocurrencies Legal in Ukraine

Various countries around the world are currently in the process of either regulating or banning cryptocurrencies. It seems there is no middle ground in this regard, although nothing has been set in stone yet in most parts of the world. Over in Ukraine, the parliament seems to be open-minded when it comes to Bitcoin and altcoins. A new law has been drafted there which would legalize cryptocurrency, just like Japan has done.

A Positive Attitude by Ukraine Goes a Long way

It is rather refreshing to see some governments not aiming to ban cryptocurrencies automatically. Ever since Bitcoin and top altcoins started gaining a lot more traction, governments have been scrambling to propose regulation and even hinder the growth of cryptocurrencies altogether. It is this negative attitude which prevents financial innovation at a time when it is direly needed. Russia is certainly making some bold – and probably wrong – decisions in this regard by attempting to ban Bitcoin altogether.

Ukraine, Russia’s neighbor, is taking a very different approach. Thanks to a newly proposed law, it is possible we will see Bitcoin and altcoins become legal tender in the country in the future. Legalizing all cryptocurrency transactions in the country will have some major effects on the industry as a whole. Although this proposal has yet to be approved, it was sent to Ukraine’s Parliament last week.

As one would expect, this proposal was created by blockchain and cryptocurrency enthusiasts. The Ukrainian Blockchain Association and parliament deputies feel there is a bright future ahead for Bitcoin and altcoins in Ukraine. It will be interesting to see if and when future amendments are made to this new proposal. Though local sources describe it as “small”, it lays the foundation for legalizing cryptocurrency transactions in the country.

The proposal in question alludes to cryptocurrency, exchanges, transactions, and miners, among other things. Notably, there is no reference to initial coin offerings, but that is only to be expected at this stage. ICOs are still considered to be very controversial all over the world, and Ukraine aims to focus on cryptocurrency first and foremost. Initial coin offerings are an afterthought right now, even though this nascent industry has proven to be worth paying attention to as well.

Contrary to what some people might expect, the proposal stipulates that Ukraine’s central bank become the regulator of cryptocurrencies moving forward. Whether or not this is a smart decision remains to be seen, but it would be pretty difficult to move ahead with legalizing cryptocurrencies if the central bank wasn’t involved in some capacity. Furthermore, all domestic exchanges will need to adhere to an operating procedure designed by the central bank. Additional specifics remain unknown for the time being, though.

One thing to keep in mind is that Ukraine may not make any major decisions until the European Union does so. After all, Ukraine is in the eurozone and the country doesn’t want to oppose the EU in any way right now. Considering that the European Union has left cryptocurrencies alone for now – without taxation guidelines – it remains to be seen if anything changes in Ukraine over the next few months. Moreover, assigning Bitcoin and altcoins a proper “classification” is not straightforward by any means.